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on Payment Systems and Financial Technology |
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Issue of 2021‒05‒31
28 papers chosen by |
| By: | Joanna Stavins |
| Abstract: | Consumer payments in the United States gradually have been shifting away from paper checks for the past several years. Cash use has declined as well, although at a much slower pace. As the number of check payments has decreased, those payments have been replaced with electronic and card payments. However, the transition from paper to electronic and card payments for bills has not proceeded in the same way as the transition for purchases. Using detailed consumer survey panel data collected over nine years, we track the same respondents over time and find that consumers who reduced their check or cash use for bill payments in a given year were more likely to reduce their check or cash use for purchases in the following year; but a reduction in check or cash use for purchases was not followed by the use of fewer checks or less cash for bill payments. The results suggest that a change in bill payment behavior may be a precursor to payment behavior changes in general. These results may help predict changes in payment instrument use for various transaction types as new payment methods, such as faster payments or central bank digital currency, become available to consumers in the future. |
| Keywords: | consumer payments; check; cards; electronic payments |
| JEL: | D12 D14 D15 |
| Date: | 2021–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:91781&r= |
| By: | David Cerezo S\'anchez |
| Abstract: | Pravuil is a robust, secure, and scalable consensus protocol for a permissionless blockchain suitable for deployment in an adversarial environment such as the Internet. Pravuil circumvents previous shortcomings of other blockchains: - Bitcoin's limited adoption problem: as transaction demand grows, payment confirmation times grow much lower than other PoW blockchains - higher transaction security at a lower cost - more decentralisation than other permissionless blockchains - impossibility of full decentralisation and the blockchain scalability trilemma: decentralisation, scalability, and security can be achieved simultaneously - Sybil-resistance for free implementing the social optimum - Pravuil goes beyond the economic limits of Bitcoin or other PoW/PoS blockchains, leading to a more valuable and stable crypto-currency |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.10464&r= |
| By: | Kang , Jong Woo (Asian Development Bank); Wang, Tengfei (United Nations Economic and Social Commission for Asia and the Pacific); Ramizo, Dorothea (Asian Development Bank) |
| Abstract: | The business-to-consumer (B2C) online commerce landscape is changing rapidly, supported by the technological innovation. However, its diffusion remains concentrated in developed and large economies and is creating a digital divide that excludes small and medium-sized enterprises and people with limited means. The coronavirus disease (COVID-19) pandemic exposed an urgent need to close the divide, both within and across countries. This paper explores disparities in B2C online commerce revenues among selected Asian economies by investigating the role of technology adoption in B2C sales online. Using proprietary panel data to ensure comparability of B2C online commerce across countries and years, the study investigates empirically the possible drivers of B2C online commerce growth. This paper yields important insights for policy makers and businesses and provides evidence that internet access and speed, online security, and financial inclusiveness matter in facilitating internet retail sales. Governments should consider these as important issues in building an enabling environment that will help B2C online commerce adapt to the post COVID-19 world and ensure that innovations create opportunities for all. |
| Keywords: | broadband; e-commerce; financial inclusion; technology |
| JEL: | F13 F14 |
| Date: | 2021–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0632&r= |
| By: | Mona Shehata (IAE - Institut d'Administration des Entreprises, CEREGE - CEntre de REcherche en GEstion - EA 1722 - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - Université de La Rochelle) |
| Abstract: | The digital communication boom in Egypt presents higher unpredictability to multinational companies operating in different countries. This gives unprecedented ground to rumours on all levels, economic, social and political, with the rise of Web 2.0. It is essential for research to keep pace with these changes, where social media has changed the game and Internet users are no longer passive players, but they can actively create and spread rumours. This chapter presents a new approach by analysing three concrete case studies of commercial rumours on Facebook in Egypt. The cases belong to different business sectors such as telecommunications, dairy products and FMCG. The data is collected using multiple tools together with online observation (netnography) and some semi-directive interviews with key players involved in the dissemination process. This chapter argues how socio-cultural differences and filters in Egypt affect rumour dissemination. The analysis involves the anatomy of initiators and type of interactions on Facebook until the debunking process. The results obtained in this chapter, and the main techniques used, can naturally extend to other countries and to another type of similar digital platform. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03231536&r= |
| By: | Christoph J. B\"orner; Ingo Hoffmann; Jonas Krettek; Lars M. K\"urzinger; Tim Schmitz |
| Abstract: | Cryptocurrencies (CCs) become more interesting for institutional investors' strategic asset allocation and will be a fixed component of professional portfolios in future. This asset class differs from established assets especially in terms of the severe manifestation of statistical parameters. The question arises whether CCs with similar statistical key figures exist. On this basis, a core market incorporating CCs with comparable properties enables the implementation of a tracking error approach. A prerequisite for this is the segmentation of the CC market into a core and a satellite, the latter comprising the accumulation of the residual CCs remaining in the complement. Using a concrete example, we segment the CC market into these components, based on modern methods from image / pattern recognition. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.12336&r= |
| By: | Eric S. Rosengren |
| Abstract: | The topic of central bank digital currencies is certainly of interest to the Federal Reserve and other nations’ central banks around the world. Like others, the Federal Reserve System is considering both the technical and policy issues surrounding all aspects of a central bank digital currency. In my brief remarks today on the panel, I will touch on several of these key considerations. |
| Keywords: | central bank digital currency; payments; technology; FedNow; Project Hamilton |
| Date: | 2021–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbsp:91749&r= |
| By: | Ahmed Awwad |
| Abstract: | Telecom industry is significantly evolving all over the globe than ever. Mobile users number is increasing remarkably. Telecom operators are investing to get more users connected and to improve user experience, however, they are facing various challenges. Decrease of main revenue streams of voice calls, SMS (Short Message Service) and LDC (Long distance calls) with a significant increase in data traffic. In contrary, with free cost, OTT (Over the top) providers such as WhatsApp and Facebook communication services rendered over networks that built and owned by MNOs. Recently, OTT services gradually substituting the traditional MNOs` services and became ubiquitous with the help of the underlying data services provided by MNOs. The OTTs` services massive penetration into telecom industry is driving the MNOs to reconsider their strategies and revenue sources. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.10265&r= |
| By: | Boot, Arnoud W A; Hoffmann, Peter; Laeven, Luc; Ratnovski, Lev |
| Abstract: | We study the effects of technological change on financial intermediation, distinguishing between innovations in information (data collection and processing) and communication (relationships and distribution). Both follow historic trends towards an increased use of hard information and less in-person interaction, which are accelerating rapidly. We point to more recent innovations, such as the combination of data abundance and artificial intelligence, and the rise of digital platforms. We argue that in particular the rise of new communication channels can lead to the vertical and horizontal disintegration of the traditional bank business model. Specialized providers of financial services can chip away activities that do not rely on access to balance sheets, while platforms can interject themselves between banks and customers. We discuss limitations to these challenges, and the resulting policy implications. |
| Keywords: | communication; financial innovation; Financial Intermediation; Fintech; Information |
| JEL: | E58 G20 G21 O33 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15004&r= |
| By: | Ojo, Marianne |
| Abstract: | What roles exist for public and private partnerships within the context of central bank digital currencies (CBDCs), in an increasingly digitalized global system? Do central bank digital currencies (CBDCs) serve as public goods rather than tools which should primarily remain within the realm and governance of private sector firms? What challenges or risks are presented through the use of CBDCs and how can such risks be mitigated through current existing structures - as well as models which have been propounded in relation to public – private partnerships? This paper aims to contribute to the literature on the topic through a consideration of several variants and models of CBDCs under which the public private partnership would function, namely the synthetic CBDC (sCBDC) and the two-tiered CBDC. Further, two other types of CBDCs, namely the wholesale CBDC and the retail CBDC will be distinguished - as well as the account based CBDC, which is contrasted to CBDCs based on digital tokens. Whilst concerns for privacy and security remain paramount and cannot be undermined, particularly from the perspectives of distributed ledger technologies (and blockchains – through which such platforms operate), such concerns need to be weighed against the need for identification since regulators will be better supported in their goals in enforcing the law, as well as identifying fraudulent operations, where sufficient identification procedures have been put in place |
| Keywords: | CBDCs; synthetic CBDCs; two tiered CBDCs; retail CBDC; distributed ledger technologies; regulation; governance; anti trust ; competition; financial stability |
| JEL: | E58 F2 F64 G3 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107868&r= |
| By: | Esther Enoch Yusuf; Abubakar Bala |
| Abstract: | Today, almost all banks have adopted ICT as a means of enhancing their banking service quality. These banks provide ICT based electronic service which is also called electronic banking, internet banking or online banking etc to their customers. Despite the increasing adoption of electronic banking and it relevance towards end users satisfaction, few investigations has been conducted on factors that enhanced end users satisfaction perception. In this research, an empirical analysis has been conducted on factors that influence electronic banking user's satisfaction perception and the relationship between these factors and the customer's satisfaction. The study will help bank industries in improving the level of their customer's satisfaction and increase the bond between a bank and its customer. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.11184&r= |
| By: | Duch-Browne, Nestor; Grzybowski, Lukasz; Romahn, André; Verboven, Frank |
| Abstract: | Did the Internet make international markets more integrated? To address this question, we study long-term international price differences and their speed of convergence, based on a unique data base for identical goods sold in both online and traditional "brick-and-mortar'' distribution channels, covering ten European countries. We find that long-term international price differences are closely comparable between both distribution channels. Furthermore, international price differences converge only slightly faster online than offline, and the differences in the international price differences between online and offline converge at a very fast rate. Finally, regardless of the distribution channel, long-term price differences are lower and converge faster within the same currency union. Our findings imply that online markets are currently not more integrated than traditional markets. |
| Keywords: | difference-in-difference convergence; E-commerce; international price convergence; International price differences; market integration |
| JEL: | L13 L68 L86 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15031&r= |
| By: | Hadar Gafni; Marek Hudon; Anaïs A Périlleux |
| Abstract: | Crowdfunding has created new opportunities for poor microentrepreneurs. One crucial question is the impact that the purpose of a loan—either business investment or basic necessities—may have on the success of a campaign. Investigating a prosocial crowdfunding platform, we find that loans taken out to meet basic needs are funded faster than business-related loans, especially for small amounts, which can be explained by the prosocial motivation of microlenders. Moreover, female microborrowers are funded faster than men, especially for basic needs loans. Our results therefore suggest an ethical blind spot, since prosocially motivated crowdlenders may unintentionally end up producing adverse effects, replicating gender role by supporting women to a lesser extent when they apply for business loans. This finding expands prosocial motivational theory in ethical finance. |
| Keywords: | Basic necessities; Business loans; Crowdfunding; Ethical finance; Gender preference; Microfinance; Microlending |
| Date: | 2020–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/312803&r= |
| By: | Gomes, Renato; Mantovani, Andrea |
| Abstract: | Online marketplaces, such as Amazon, or online travel agencies, such as Booking.com, greatly expand consumer information about market offers, but also raise firms' marginal costs by charging high commissions. To prevent show-rooming, platforms adopted price parity clauses, which restrict sellers' ability to offer lower prices in alternative sales channels. Whether to uphold, reform, or ban price parity has been at the center of the policy debate, but so far little consensus has emerged. In this paper, we investigate a natural alternative to lifting price parity; namely, we study how to optimally cap platforms' commissions. The optimal cap reflects the Pigouvian precept according to which the platform should not charge fees greater than the externality that its presence generates on other market participants. Employing techniques from extreme-value theory, we are able to express the optimal cap in terms of observable quantities. In an application to online travel agencies, we find that current average fees are welfare increasing only if platforms at least double consumers' consideration sets (relative to alternative ways of gathering information online). This suggests that, in some markets, regulation capping commissions should bind if optimally set. |
| Keywords: | commission caps; Extreme value theory; platforms; price parity; regulation |
| JEL: | D83 L10 L41 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15048&r= |
| By: | Liew, Venus Khim-Sen |
| Abstract: | This paper aims to provide swift feedback to readers and investors on the early effect of novel coronavirus (COVID-19) pandemic outbreak on tourism industry. Three leading consolidators of hotel accommodations, airline tickets and travel services in the tourism industry around the globe, namely Booking Holdings Inc., Expedia Group and Trip.com Group Ltd. are chosen in this study. First, numerical description is performed on their shares prices and a set of control variables, to compare their performances before and during the lockdown due to COVID-19 outbreak. Next, this paper estimates OLS models with and without General AutoRegressive Conditional Heteroscedasticity (EGARCH) specification to establish the nature, significance and magnitude of the pandemic early effect on the shares performance of these online travel companies. This paper discovers a rapid decline in the performance of tourism industry amid the pandemic outbreak, from the perspective of three leading online travel companies, which derive their profits from tourists by providing them online hotel reservation, air-ticketing and packaged-tour business services around the globe. This significant adverse direct and indirect effects testify that tourism related businesses are extensively locked down by the pandemic outbreak. Future studies are encouraged to examine each of the tourism sectors for individual effects. This paper provides implications for investors to protect their wealth, and for policy makers to ensure sustainability of tourism industry in the pandemic outbreak and in the future. From the perspective of corporate finance, this paper empirically quantifies the early effect of COVID-19 on tourism industry for a quick snapshot. |
| Keywords: | coronavirus pandemic, COVID-19,tourism, share prices |
| JEL: | G15 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107985&r= |
| By: | Gill, Andrej; Heinz, Matthias; Schumacher, Heiner; Sutter, Matthias |
| Abstract: | The financial industry has been struggling with widespread misconduct and public mistrust. Here we argue that the lack of trust into the financial industry may stem from the selection of subjects with little, if any, trustworthiness into the financial industry. We identify the social preferences of business and economics students, and follow up on their first job placements. We find that during college, students who want to start their career in the financial industry are substantially less trustworthy. Most importantly, actual job placements several years later confirm this association. The job market in the financial industry does not screen out less trustworthy subjects. If anything the opposite seems to be the case: Even among students who are highly motivated to work in finance after graduation, those who actually start their career in finance are significantly less trustworthy than those who work elsewhere. |
| Keywords: | Experiment; Financial Industry; selection; social preferences; trustworthiness |
| JEL: | C91 G20 M51 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15147&r= |
| By: | Belleflamme, Paul; Peitz, Martin; Toulemonde, Eric |
| Abstract: | We introduce asymmetries across platforms in the linear model of competing two-sided platforms with singlehoming on both sides and fully characterize the price equilibrium. We identify market environments in which one platform has a larger market share on both sides while obtaining a lower profit than the other platform. This platform enjoys a competitive advantage on one or both sides. Our finding raises further doubts on using market shares as a measure of market power in platform markets. |
| Keywords: | Antitrust; market power; Market Share; network effects; oligopoly; Two-sided platforms |
| JEL: | D43 L13 L86 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15204&r= |
| By: | Zeinab Rouhollahi |
| Abstract: | Recently, financial institutes have been dealing with an increase in financial crimes. In this context, financial services firms started to improve their vigilance and use new technologies and approaches to identify and predict financial fraud and crime possibilities. This task is challenging as institutions need to upgrade their data and analytics capabilities to enable new technologies such as Artificial Intelligence (AI) to predict and detect financial crimes. In this paper, we put a step towards AI-enabled financial crime detection in general and money laundering detection in particular to address this challenge. We study and analyse the recent works done in financial crime detection and present a novel model to detect money laundering cases with minimum human intervention needs. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.10866&r= |
| By: | PINSHI, Christian P. |
| Abstract: | This article explores the potential opportunity of FinTech on the financial system in the dark and wicked era of COVID-19. We first provide a seven-figure overview of the unpleasant impact of COVID-19 on the financial system. FinTech sees itself on the one hand as a hope to rebalance the global financial system in this time of financial turmoil, and on the other hand becomes an ultimate weapon to strengthen the resilience of the financial system and respond to the crisis by ensuring the functioning system while respecting containment measures and preventing the spread of the virus. |
| Keywords: | FinTech, Financial system, COVID-19 |
| JEL: | E2 E44 G2 O33 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107863&r= |
| By: | Juan Nelson Mart\'inez Dahbura; Shota Komatsu; Takanori Nishida; Angelo Mele |
| Abstract: | Social and professional networks affect labor market dynamics, knowledge diffusion and new business creation. To understand the determinants of how these networks are formed in the first place, we analyze a unique dataset of business cards exchanges among a sample of over 240,000 users of the multi-platform contact management and professional social networking tool for individuals Eight. We develop a structural model of network formation with strategic interactions, and we estimate users' payoffs that depend on the composition of business relationships, as well as indirect business interactions. We allow heterogeneity of users in both observable and unobservable characteristics to affect how relationships form and are maintained. The model's stationary equilibrium delivers a likelihood that is a mixture of exponential random graph models that we can characterize in closed-form. We overcome several econometric and computational challenges in estimation, by exploiting a two-step estimation procedure, variational approximations and minorization-maximization methods. Our algorithm is scalable, highly parallelizable and makes efficient use of computer memory to allow estimation in massive networks. We show that users payoffs display homophily in several dimensions, e.g. location; furthermore, users unobservable characteristics also display homophily. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.12704&r= |
| By: | Christoph J. B\"orner; Ingo Hoffmann; Jonas Krettek; Lars M. K\"urzinger; Tim Schmitz |
| Abstract: | This paper evaluates and assesses the risk associated with capital allocation in cryptocurrencies (CCs). In this regard, we take a basket of 27 CCs and the CC index EWCI$^-$ into account. After considering a series of statistical tests we find the stable distribution (SDI) to be the most appropriate to model the body of CCs returns. However, as we find the SDI to possess less favorable properties in the tail area for high quantiles, the generalized Pareto distribution is adapted for a more precise risk assessment. We use a combination of both distributions to calculate the Value at Risk and the Conditional Value at Risk, indicating two subgroups of CCs with differing risk characteristics. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.12334&r= |
| By: | , Michelle |
| Abstract: | Micro, Small, and Medium Enterprises (MSMEs) have a very vital role in the development and economic growth in Indonesia. According to the Ministry of Cooperatives and SMEs, in 2020, MSMEs have a total of 60% contribution to the Gross Domestic Bruto and 90% contribution to the national workforce absorption. Therefore, the recovery of MSMEs is very important for the well-being of the national economy. The Covid-19 pandemic must encourage MSMEs actors to transform their businesses if they want to survive. Business digitalization during the Covid-19 pandemic is growing faster. Therefore, the recovery of MSMEs cannot be separated from the utilization of information technology |
| Date: | 2021–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:uj83w&r= |
| By: | Guillaume Andrieu (Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Benjamin Le Pendeven (Audencia Recherche - Audencia Business School); Gaël Leboeuf (COACTIS - COACTIS - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Étienne]) |
| Abstract: | A large body of literature documents the significant difficulties experienced by female entrepreneurs in obtaining early-stage funding from investors. We investigate this issue in the emerging equity crowdfunding (ECF) context. Our results, based on data from four French ECF platforms, confirm that the feminisation of top management significantly reduces the likelihood of funding, suggesting that crowdfunding does not alleviate the difficulties that women face in raising funds to create startups. |
| Date: | 2021–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03227572&r= |
| By: | K M, SIBY; V Varghese, Dr.Varun |
| Abstract: | The testing times of Covid Pandemic had made online classes the new norm of academic transmission of knowledge. The inevitability of a smart device and Internet access in a student's life had made drastic changes in their academic perspectives. The present study aimed to analyze the attitude of students towards Internet and online classes based on data collected from 111 student respondents belonging to different age and education categories from different parts of the Ernakulam district of Kerala. The frequency analysis and Chi-Square analysis were applied to study the data and found that gender and age categories had no significant association with time spent on online classes while the education category of students shows a significant association. |
| Keywords: | Online Class, Internet Utilization, Chi-Square |
| JEL: | I21 I26 |
| Date: | 2021–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107865&r= |
| By: | Frost, Jon; Gambacorta, Leonardo; Gambacorta, Romina |
| Abstract: | This paper analyses the role of financial development and financial technology in driving inequality in (returns to) wealth. Using micro data from the Survey on Household Income and Wealth (SHIW) conducted by the Bank of Italy for the period 1991-2016, we find evidence of the "Matthew effect" - a capacity of wealthy households to achieve higher returns than other households. With an instrumental variable approach, we find that financial development (number of bank branches) and financial technology (use of remote banking) both have a positive association with households' financial wealth and financial returns. While households of all wealth deciles benefit from the effects of financial development and financial technology, these benefits are larger when moving toward the top of the wealth distribution. Still, the economic significance of this gap fell in the last part of the sample period, as remote banking became more widespread. |
| Keywords: | banks; Financial Development; financial technology; Fintech; inequality |
| JEL: | D63 G10 G21 O15 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15014&r= |
| By: | panggantara, Pang william |
| Abstract: | The emergence of the Covid-19 pandemic caused Indonesia’s economy to experience deflation, the group whose income is not affected prefer to save rather than spending their money, this happen with consideration that no one knows when the Covid-19 pandemic will end and when will the the situation return to normal. The pandemic has decreased people’s income and purchasing power. People saving are decreased used for consumption needs, especially for the employee that’s terminated from the the company or has been laid off, this cases resulting in and increasingly depleted source of household funds. |
| Date: | 2021–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:w5sbj&r= |
| By: | P. A. Gloor; A. Fronzetti Colladon; F. Grippa; B. M. Hadley; S. Woerner |
| Abstract: | The purpose of this study is to examine the impact of board member composition and board members' social media presence on the performance of startups. Using multiple sources, we compile a unique dataset of about 500 US-based technology startups. We find that startups with more venture capitalists on the board and whose board members are active on Twitter attract additional funding over the years, though they do not generate additional sales. By contrast, startups which have no venture capitalists on the board and whose board members are not on Twitter show an increased ability to translate assets into sales. Consistent with other research, our results indicate that startups potentially benefit from working with VCs because of the opportunity to access additional funding, although their presence does not necessarily translate into sales growth and operational efficiency. We use a number of control variables, including board gender representation and board members' position in the interlocking directorates' network. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.10237&r= |
| By: | Stiebale, Joel; Südekum, Jens; Woessner, Nicole |
| Abstract: | We study the impact of a recent digital automation technology - industrial robotics - on the distribution of sales, productivity, markups, and profits within industries. Our empirical analysis combines data on the industry-level stock of industrial robots with firms' balance sheet data for six European countries from 2004 to 2013. We find that robots dis-proportionally raise productivity in those firms that are already most productive to begin with. Those firms are able to increase their markups and overall profits, while they tend to decline for less profitable firms within the same industry, country and year. We also show that robots contribute to the falling aggregate labor income share through a rising concentration of industry sales in highly productive firms with low firm-specific labor shares. In sum, our paper suggests that robots boost the emergence of superstar firms within European manufacturing, and thereby shifts the functional income distribution away from wages and towards profits. |
| Keywords: | automation; Labor Share; Markups; productivity; robots; Superstar Firms |
| JEL: | D4 L11 O33 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15080&r= |
| By: | Ozili, Peterson K |
| Abstract: | Achieving high levels of financial inclusion has been a policy priority for policy makers in many countries as policy makers seek to reduce the level of financial exclusion to low levels. There have also been increased interest in financial inclusion research by academics. This paper proposes some index and ratios of financial inclusion and financial exclusion. The proposed index, measures and ratios are easy to compute and are comparable across countries. Policy makers, analysts and academics will find it useful. |
| Keywords: | Financial inclusion, financial exclusion, poverty, access to finance, index, inclusive growth, development |
| JEL: | G00 G21 O17 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107866&r= |